January 22, 2025
Happy 2025,
As we close the chapter on 2024, I want to take a moment to share with you some the remarkable accomplishments the Utah Department of Commerce achieved last past year. The department has undergone a transformative year of growth, innovation, and recognition. Here’s a comprehensive look at the year’s key highlights:
Artificial Intelligence Advancements Establishing the Office of Artificial Intelligence Policy (OAIP) positioned Utah as a frontrunner in AI governance. This new office proactively develops recommended policy options to enhance public trust in technology and ensure the safe application of Generative AI, particularly in sensitive areas such as mental healthcare. One of the standout moments this year was OAIP’s first regulatory mitigation agreement with ElizaChat, an innovative app supporting mental wellness in teenagers. Additionally, the Utah AI Policy Summit brought together hundreds of industry leaders, innovators, and policymakers to discuss the future of AI.
Strengthening Online Safety for Minors Utah took significant action to shield children from the potential dangers of social media by enacting the Minor Protection in Social Media Act. Under the leadership of Governor Spencer J. Cox and with support from Commerce and the legislature, strict age verification processes and robust privacy settings were enacted, emphasizing parental involvement in protecting their children’s online experiences. The Division of Consumer Protection (DCP) followed its prior legal actions against Meta and TikTok with an additional action against TikTok, this time focusing on its livestreaming feature, which can act as a virtual strip club.
Consumer Protection Achievements DCP secured $42.5 million in restitution from Real Estate Workshop, exemplifying a significant win in protecting Utah consumers from predatory practices. More than 25,000 consumers affected by the Zurixx, LLC real estate investment coaching scheme received money following a $12 million settlement in 2022. Additionally, DCP facilitated over $10 million in refunds for consumers misled by Nudge, LLC, resulting in a permanent ban on misleading “wealth creation” products.
Action Against Deceptive Solar Practices DCP tackled fraudulent activities in the solar industry by taking legal action against Colarusso Ventures, LLC (operating as Elan Solar). Following over 30 complaints regarding non-functional solar systems and deceptive sales tactics, the Division of Professional Licensing (DOPL) revoked Elan Solar’s contractor license after a thorough investigation.
Corporate Accountability in the Opioid Crisis DCP sued UnitedHealth Group and Express Scripts. This legal action aimed to hold these companies accountable for their role in facilitating opioid misuse.
Restitution distributed in Rust Rare Coins Ponzi Scheme The Division of Securities distributed an additional $5.9 million to Rust Rare Coins Ponzi scheme victims, bringing the total restitution to nearly $30 million. Gaylen Rust, the orchestrator of the scheme, is currently serving a 19-year federal prison sentence.
Securities fraud cases in court Two significant legal cases involving securities fraud played out last year. In the first case, an Orem man pleaded guilty to securities fraud after deceiving approximately 130 investors by selling unlicensed investment contracts through his company, Alpha Influence, LLC. In the second case, a Midvale man was sentenced to 56 months for defrauding around 300 investors out of $10 million for misleading investors with false claims regarding his smartphone company, SAYGUS.
Launch of a new business registration system The Division of Corporations (DCCC) launched a new online business registration system, transitioning from a nearly 20-year-old platform. The initial rollout faced challenges that impacted many Utahns. We appreciate the dedication of our teams from Corporations, DOPL, Consumer Protection, Real Estate, Securities, and Communications, who worked hard to address customer service issues during this transition. We remain committed to improving the system in 2025.
Behavioral Healthcare Services in Utah The Office of Professional Licensure Review (OPLR) partnered with the legislature to enact SB 26, the Behavioral Health Licensing Bill, which enacted regulatory reforms to address the shortage of mental health professionals based on OPLR’s 2023 review of behavioral health licensing. This legislation streamlined the licensure process, removed barriers, and created alternative pathways for mental health professionals to expand the workforce and improve access to services.
Additional new provisions included:
- Creating a new bachelor’s level behavioral health coach license, a new certification for Behavioral Health Technicians, in order to fill out the behavioral health workforce
- Establishing a Behavioral Health Board and advisory committees.
- Developing streamlined applications for new licenses.
OPLR also began reviewing licensing for cosmetology, massage therapists, and building inspectors to enhance accessibility and consumer safety.
Expanded Licensure for Internationally Trained Professionals in Utah Utah made significant strides with the Internationally Trained Applicant Credentialing program. A standardized rubric was created to evaluate foreign qualifications for electricians. The program licensed three Associate Clinical Mental Health Counselors and approved 28 internationally trained nurses for the NCLEX exam, resulting in five licenses issued. Additionally, DOPL granted at least 30 cosmetology licenses. A collaborative effort with dental professionals is expected to launch in early 2025.
DRE Welcomes New Director and Completed Licensing System Upgrade
The Division of Real Estate (DRE) welcomed a new director, Leigh Veillette, who took over the reins after several years as director of Corporations. Additionally, DRE has significantly improved its licensing processes by successfully transitioning to the
new “My License One” (ML1) system. This upgrade aims to streamline license management for current and new licensees, allowing them to access most of their filings with DRE in one convenient location.
Management Shift for Land Use Academy of Utah
In FY2024, the Office of the Property Rights Ombudsman (OPRO) collaborated with the Utah League of Cities and Towns to transfer the management of the Land Use Academy of Utah (LUAU) website to the Statewide Land Use Training Director position, which is based within OPRO. The website was updated to enhance accessibility and include additional land-use planning tools and resources to educate government agencies, private citizens, and organizations about land-use laws and best practices. Efforts to further improve and expand the site are ongoing.
Utah’s Historic DAO Initiative Utah became the first state in the nation to register decentralized autonomous organizations (DAOs) as legal entities. DCCC began accepting DAO registrations in January, providing these innovative organizations with legal recognition and limited liability.
Key Successes in Consumer Advocacy and Utility Management The Division of Public Utilities (DPU) took proactive measures in assessing Rocky Mountain Power’s proposed rate increases, ensuring that consumers would not be unfairly burdened by costs arising from the company’s negligent wildfire-related incidents in Oregon. DPU endorsed Enbridge’s acquisition of Questar Gas, a move expected to enhance local management practices. In June, DPU effectively advocated for a nearly 30% reduction in natural gas rates. The Office of Consumer Services (OCS) prioritized the protection of Utah’s residential and small business ratepayers amidst evolving utility models. Their hard work culminated in an agreement that ensured customer protection and established robust communication strategies during the ownership transition with Enbridge. Charity Registration Changes Charitable organizations no longer need to submit annual registrations to DCP. Beginning January 1, 2025, specific charities must submit their most recent IRS Form 990 with their business filings to DCCC. DCP will continue to manage registrations for professional fundraisers and investigate deceptive practices.
Expanded the Scamalot Campaign The “Knights of Scamalot” campaign achieved significant milestones, including introducing Señor Protector, a Spanish-speaking knight dedicated to empowering the Spanish-speaking community with essential information to “Protect Thyself” from fraud and scams. Additionally, the Department produced content focusing on affinity scams/business opportunity scams, a common scam method in Utah, and created Spanish-language content on this topic. The campaign also received national recognition with Ragan’s PR Daily Award for Public Service Campaign for tackling various scams, such as crypto schemes and fake real estate investments.
The Department’s accomplishments in 2024 reflect our commitment to protecting consumers and promoting innovative practices in technology and business. As we move into 2025, we are eager to build on this momentum, and we look forward to working with legislators to strengthen trust in Utah’s commercial activities in the current legislative session.
Warm Regards,
Margaret Busse
